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Salary reduction

Hi anyone had any experiences in reducing salaries but expecting the same output from the employee. What challenges did you face in terms of refusal or redundancy situations. Anything positive you can offer in terms of delivery of the message or suggestions to ease the news.
283 views
  • Hi Carol

    This normally has to be achieved by means of adequate consultation and mutual consent rather than by decree or diktat or imposition. We live in a free country subject to the rule of law, after all......
    If your employers think they can easily or lightly take this kind of action, then they are hardly fit for purpose.
    If it's an emergency proposal in order to avoid redundancies etc then all should start with consultation aimed at achieving that mutual consent.
  • Thanks David yes it is the latter an emergency measure and they are intending to consult was wondering if anyone had experience in what issues arise during the consultation and how they overcome those challenges.
  • In reply to carol wraight:

    Understood, Carol: if it’s presented as a *possible* alternative to redundancies or worse rather than as a done deal then it might better achieve consent as the lesser of two evils. In similar vein, better chance of consent if the workforce themselves rather than the management come up with this or something like it as an alternative to redundancies / a way of everyone or most keeping their jobs longer term.
  • Hi Carol

    Are the reduction in salaries going to include the senior management?

    If so then making that clear will help ease the news/pain.
  • It would also be a good idea to ask staff for their suggestions for cost savings - even if the have none. They will feel that they have had an opportunity to contribute and take part in the decision. You never know, they may come up with something usable......
  • In reply to Ray:

    It would also help if there is a proportionate reduction in hours